Q&A with Peter Troob of Troob Capital Management
Please join us for a Family Office Insights Webinar featuring Peter Troob, Co-Founder of Troob Capital Management LLC, an RIA founded in 2002. Peter is a long-time investor in the public and private markets managing both investment funds and his family office. He is also the co-author of Monkey Business: Swinging Through the Wall Street Jungle, a book about his experience as an investment banker at DLJ in the 1990s.
January 20, 2022 at 2:15pm-3:15pm EST
RSVP & Confirmation Required
Through its Tactical Opportunities strategy, Troob Capital Management and its affiliates (“TCM”) provides capital solutions that solve liquidity needs below $20 million. TCM is raising TCM Tactical Opportunities Fund II, building on the success of its first fund by targeting the same market niche, utilizing its proprietary deal flow and investment platforms, and leveraging its prior investment experience.
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What Does TCM Do?
• Provide access to an underserved part of the market where experienced capital is scarce
- Focus efforts on solving capital needs of less than $20 million for a large and growing market need
• Offer flexible capital through unconstrained approach
- Flexibility to invest anywhere, discipline not to invest everywhere
- Tailor investments by listening to companies’ needs and designing solutions
- Provide capital opportunistically and strategically in all market environments
- Unconstrained by asset class or type, industry or sector, and geography
- Move nimbly to put capital in place in fast-moving, dynamically shifting markets
• Tailor investments by listening to companies’ needs and designing solutions.
- Price and structure capital appropriate for the risk
- Leads to repeatable investment platforms and partners
• Create bespoke portfolio
- Build a diversified portfolio of investments varying in investment horizons, cash flows and security that mitigates downside risk and maintains upside return potential
What is the Market Opportunity?
TCM believes that in the market niche where we focus experienced capital is difficult to locate. As investments in alternative assets have proliferated over the previous decade, investors have focused on larger investment opportunities. TCM believes that this has created an imbalance in the smaller end of the market (below $20 million) between the need for capital and the capital available to meet the need. TCM has observed this across various types of alternative asset classes including private equity, private credit, real estate, and tangible assets.
HOW DOES TCM TEAM ACCESS THE MARKET OPPORTUNITY TO ACHIEVE 18-22% RETURNS?
TCM focuses on developing investment platforms with the following characteristics:
• Create a repeatable and consistent source of investments that is diversified
• Continuously build relationships with operating partners to build investment platforms across asset classes
- Create a line of sight for use of capital for TCM Tac Opps Fund II through building of trust, transparency and success
• Maintain a deal flow mechanism focused on proprietary deal flow
- In 2020 originated a diversified pool of approximately 850 investment prospects, a subset of which came directly from relationships in TCM’s network.
In summary, we believe that TCM Tac Opps Fund II provides access to investment opportunities in an underserved market niche that offer a compelling risk/reward targeting 18-22% net IRR. TCM knows what it is looking for: large margins of safety while maintaining upside return potential.
Peter Troob of Troob Capital Management
Mr. Troob co-founded Troob Capital Management LLC in 2002. He leads TCM’s opportunistic investment strategy providing capital solutions across asset classes, capital structures, industries and geographies in both liquid and illiquid investments. His responsibilities include identifying, evaluating, structuring and managing investments as well as portfolios. Mr. Troob has extensive experience investing in growth opportunities as well as deep value, distressed, restructurings, and illiquid situations. In addition, Mr. Troob has been responsible for investing the capital of his family office across asset classes including private equity and debt, real estate, venture capital and special situations.
Prior to founding TCM, Mr. Troob was a Principal at Everest Capital, a global hedge fund, where he was focused on the Everest Capital Senior Debt L.P. and concentrated on distressed securities, capital structure arbitrage and special situations. Prior to joining Everest, Mr. Troob was a Partner at Contrarian Capital Management LLC, a distressed debt and special situation hedge fund, where he was responsible for all aspects of the investment process with active involvement in driving value-creating events. He also worked in the investment banking departments of Donaldson, Lufkin & Jenrette, Kidder Peabody and The Geneva Companies engaging in mergers and acquisitions and corporate finance transactions. Mr. Troob is a published author of Monkey Business: Swinging Through the Wall Street Jungle. He received a B.A. and graduated magna cum laude and Phi Beta Kappa from Duke University in 1991, and an M.B.A. from Harvard Business School in 1995.
DISCLAIMERS: THIS DOCUMENT IS NOT INTENDED TO BE, NOR SHOULD IT BE CONSTRUED OR USED AS AN OFFER TO SELL, OR A SOLICITATION OF ANY OFFER TO BUY LIMITED PARTNERSHIP INTERESTS IN TCM TACTICAL OPPORTUNITIES FUND II LP (THE “FUND”). ANY OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY INTERESTS IN ANY SECURITIES, INVESTMENT PRODUCT OR FUND, MAY ONLY BE MADE BY MEANS OF DELIVERY OF A CONFIDENTIAL PRIVATE OFFERING MEMORANDUM OR OTHER SIMILAR MATERIALS WHICH CONTAIN A DESCRIPTION OF THE MATERIAL TERMS AND VARIOUS CONSIDERATIONS AND RISK FACTORS RELATING TO SUCH SECURITIES, INVESTMENT OR FUND. THERE CAN BE NO ASSURANCE THAT TCM’S INVESTMENT OBJECTIVE WILL BE ACHIEVED OR THAT INVESTORS WILL NOT INCUR LOSSES. THE INVESTMENT PROGRAM ENTAILS A HIGH DEGREE OF RISK. PAST PERFORMANCE DOES NOT GUARANTEE OR INDICATE FUTURE RESULTS.
An investment in the Fund is suitable only for sophisticated investors who have no need for current liquidity. There will be no secondary market for interests in the Fund. Interests in the Fund have not been registered under the Securities Act of 1933, as amended, or applicable state securities laws, and may not be resold other than pursuant to registration thereunder or an available exemption. The Fund may invest in illiquid securities.
Target Return. The target return stated above is an estimated net return target based on the historical outlook and past performance of TCM personnel. The target returns are premised on a number of factors, including, without limitation, prior investments made by certain TCM managed funds and the opportunities that TCM personnel are currently seeing and/or expect to see in the future in the marketplace, which are inherently uncertain and are subject to numerous business, industry, market, regulatory, geo-political, competitive and financial risks that are outside of TCM’s control. There can be no assurance that the assumptions made in connection with the target returns will prove accurate, and actual results may differ materially, including the possibility that an Investor may lose some or all of any invested capital. The inclusion of the target returns herein should not be regarded as an indication that TCM or any of its representatives consider the target returns to be a reliable prediction of future events and the target returns and should not be relied upon as such. Neither TCM nor any of its representatives have made or make any representation to any person regarding the target returns and none of them intends to update or otherwise revise the target returns to reflect circumstances existing after the date when made or to reflect the occurrence of future events, even in the event that any or all of the assumptions underlying the target returns are later shown to be incorrect.
The information presented herein, including, but not limited to, TCM’s organizational structure, investment experience/views, returns or performance, risk management, market opportunity, actual and representative strategies, expectations, targets, parameters, guidelines and positions may involve TCM’s views, estimates, assumptions, facts and information from other sources that are believed to be accurate and reliable and are stated as of the date this information is presented, any of which may change without notice. TCM has no obligation (express or implied) to update any or all of the information contained herein or to advise you of any changes; nor does TCM make any express or implied warranties or representations as to the completeness of accuracy or accept responsibility for errors. The information presented is for illustrative purposes only and does not constitute an exhaustive explanation of the investment process, investment strategies or risk management.
This document and the information contained herein is confidential and is intended solely for the information of the person to whom it has been delivered. It is not to be reproduced, used, distributed or disclosed, in whole or in part, to third parties without the consent of TCM. By accepting receipt of this communication, the recipient will be deemed to represent that they possess, either individually or through their advisers, sufficient investment expertise to understand the risks involved in any purchase or sale of any financial instruments discussed herein. Each person accepting this document hereby agrees to return it promptly upon request.
This document does not contain a complete description of the terms of the Fund, has been prepared for information purposes only for qualified prospective investors in the Fund and will be qualified in its entirety by reference to the Fund’s definitive confidential offering memorandum (the “Memorandum”) and organizational documents, all of which must be read carefully prior to making an investment in the Fund.
The Fund interests have not been registered under the Securities Act of 1933, as amended or similar state laws and may not be sold or otherwise transferred other than pursuant to registration under such Act and laws or an available exemption therefrom. The Fund will not be registered under the Investment Company Act of 1940, as amended. TCM is registered as an investment adviser under the investment Advisers Act of 1940, as amended. Registration of an Investment Advisor does not imply any level of skill or training. Parts 2 of TCM’s SEC Form ADV filing is available at https://adviserinfo.sec.gov/.
This document may contain forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements include, but are not limited to, discussions related to Troob Capital Management and together with its affiliates (“TCM”, “we”, “us”, and “our”) expectations regarding the performance of its business, liquidity and capital resources and the other non-historical statements. These forward-looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. When used in this document, the words “believe,” “anticipate,” “estimate,” “expect,” “intend” or future or conditional verbs, such as “will,” “should,” “could,” or “may,” and variations of such words or similar expressions are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to be correct.